What is the expected dividend yield for the stock


Nonconstant growth stock

Do= $2.40

Dividend growth rate is 20% for year 1, then after year one is constant at 4.0%

Risk free rate = 5.0%

Market risk premium = 6.0%

Beta= 1.5

Assuming market is in equilibrium

Questions:

What is the dividend one year from now, (D1)?

Horizon Value (P1)?

Intrinsic value of stock?

What is the expected dividend yield for the stock today?

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Financial Management: What is the expected dividend yield for the stock
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